The telecommunications enterprise Broadcom released its first-quarter financial results on Thursday while delivering both excessive earnings above experts’ predictions and solid projections for the upcoming quarter. High trading activity propelled Broadcom stock prices to grow by 16% following its financial report announcement.
The company exceeded analyst expectations during its first-quarter period demonstrating financial results as follows:
The company delivered adjusted earnings per share of $1.60 while analysts predicted $1.49 for this period.
Revenue: $14.92 billion vs. $14.61 billion expected
The second quarter projection from Broadcom stands at $14.9 billion which exceeds Wall Street’s projection of $14.76 billion. The company achieved 25% revenue growth by generating $14.92 billion during the same period of last year.
The company achieved a $5.5 billion net income ($1.14 per share) increase after generating $1.33 billion in net income with $0.28 per share earnings in the previous year.
The rapid growth at Broadcom happens because of the AI business which functions as a leading supplier of infrastructure for artificial intelligence purposes. Google collaborates with the company to create specialized AI chips while its components facilitate the connection between thousands of chips for high-level AI processing.
Broadcom’s stock value experienced a 23% decrease during the beginning of 2025 until investors initiated the dramatic after-hours increase.
During the first quarter Broadcom achieved a 77% revenue growth in AI-related sales resulting in $4.1 billion. Semiconductor solutions division growth for the first quarter reached 11% and achieved $8.21 billion revenue.
Broadcom CEO Hock Tan predicts the company will continue experiencing strong AI semiconductor revenue which he forecasts will reach $4.4 billion during the next fiscal quarter.
During December Broadcom started developing custom AI chips intended for three major cloud service providers. Tan disclosed that the company operates in close collaboration with two major cloud providers while actively pursuing alliances with four organizations that may become clients. The company selects its business partnerships cautiously by selecting companies which demonstrate capabilities to handle extensive deployment operations.
The company only offers these services to established organizations according to Tan.
During the quarter the infrastructure software division of Broadcom that incorporates VMware software generated $6.7 billion in revenue through a 47% growth from the previous year.
